La Banque centrale réexaminera le régime d'exécution après le jugement cinglant de la Haute Cour

Central Bank Governor Gabriel Makhlouf announced Thursday that the institution would conduct a comprehensive review of its enforcement practices following a critical High Court ruling regarding its handling of a fitness and probity investigation into an unnamed Irish investment fund executive. The ruling, issued by High Court President Judge David Barniville on April 17, described the probe as "irretrievably tainted" due to procedural errors. Makhlouf emphasized during testimony before the Oireachtas finance committee that the bank would fully adhere to the court's findings and has already initiated an external evaluation of its broader enforcement mechanisms. The controversy centers on an individual who served as an executive director at an Irish investment fund management firm. This entity oversees sub-funds that feed into master funds managed by a related company based in the United Kingdom. The High Court rejected the Central Bank’s proposal to impose a one-year prohibition on the individual, despite the application having been submitted in 2022. The court ruled that the individual’s right to natural and constitutional justice had not been upheld by the Central Bank in this instance. In response to the judgment, Makhlouf outlined several procedural reforms implemented since the initial decision in February 2022. These include ensuring that a prohibition only takes effect once it is either mutually agreed upon with the individual under investigation or confirmed by the High Court. Additionally, the Central Bank has integrated specific recommendations concerning fairness, efficiency, and transparency of processes proposed by Andrea Enria, the former head of the European Central Bank’s banking supervision division. These guidelines were introduced in 2024 following a review of the regulator’s executive vetting system. The Central Bank also intends to release updated guidance on its approach to making prohibition decisions later this year. Makhlouf stated that the organization plans to undertake a more extensive examination of its enforcement activities throughout the bank, acknowledging that the system has undergone substantial modifications over the past few decades influenced by legislative changes and judicial decisions. During the hearing, Makhlouf faced rigorous scrutiny from committee members regarding the Central Bank’s handling of the approval process for Israeli bonds. Last September, the Central Bank transferred responsibility for approving the prospectus of these bonds to Luxembourg. This move pertains to a debt-raising initiative linked to Israel’s need for financial resources to combat the conflict in Gaza. Despite Ireland retaining the status of the home member state for regulatory purposes concerning Israeli bond prospectuses, the Central Bank might soon be requested by Israel to approve a new prospectus or facilitate another transfer of authority when the existing document expires in September. Makhlouf refrained from commenting on whether any discussions had occurred regarding such requests. He reiterated his previous statements expressing deep concern over the tragic loss of life and devastation witnessed in Gaza and the broader Middle East. Representing the sentiments of the entire Central Bank, he expressed a desire for an immediate cessation of hostilities by all involved parties. He affirmed that the Central Bank is obligated to approve a prospectus if it satisfies the criteria of completeness, comprehensibility, and consistency set forth by relevant regulations. The Central Bank’s actions reflect a broader effort to align its operations with evolving legal standards and international expectations. As the institution moves forward with its internal reviews and potential policy adjustments, stakeholders remain attentive to how these developments might influence future regulatory approaches within the financial services sector.